Pictet Trims Hedge Fund Allocation for Cheaper Quant Strategies

  • Average hedge fund return disappointing: wealth manager’s CIO
  • Investors to allocate more to factor investing, Invesco says
Lock
This article is for subscribers only.

Pictet Wealth Management, the Geneva-based firm that oversees $189 billion, has started to pull some money from hedge funds in favor of cheaper factor-investing strategies as it seeks to cut costs for clients.

The money manager is looking to shift money into so-called alternative risk premia products that replicate hedge fund-style strategies across asset classes at a lower price, Chief Investment Officer Cesar Perez Ruiz said. The unit is also trimming allocations to some fixed-income strategies to help fund the shift in strategy, he said.